John M. Reed

John M. Reed

Partner, Credit

John M. Reed (San Francisco) joined KKR in 2008 and is a Partner of KKR. Mr. Reed serves as Head of Global Trading. Prior to joining KKR, Mr. Reed was an associate director at Bear Stearns & Co. in their institutional fixed income depa...

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JUN 08, 2023

Are High Yield Bonds More Valuable than They Appear?

Are High Yield Bonds More Valuable than They Appear?

In some countries, cars have warnings on their side mirrors: Objects may be closer than they appear. We believe that the high yield bond market may be cheaper on a risk-adjusted basis than it currently appears, too. High yield option-adjusted spreads were at 450 basis points as of April 30, 2023, which is wider than on ...